DJI climbs out of hole for a small gain

The Ticker

June 02, 1994|By Julius Westheimer

Recovering from a 26-point drop early yesterday morning, the Dow Jones industrial average moved steadily higher during the day and gained 2.46 points, closing at 3,760.83. Bonds edged higher also, with the 30-year Treasury issue adding half a point. U.S. Surgical stock, widely held in this area, advanced $2.75 to close at $21.75.

TAKE YOUR CHOICE: "Stocks will decline slowly over the next several months, with the Dow Jones average dropping from its high of 3,978 to about 3,200." (Michael Metz, chief strategist, Oppenheimer & Co.) . . . "We're very positive on stocks because profit growth and cash flow look excellent. We recommend 75 percent in stocks." (Abby Joseph Cohen, Co-Chairman, Goldman Sachs' Investment Policy Committee)

JUNE JOURNAL: "Workers are adding more stock funds to their 401(k)s and IRAs. Even people whose sole investments are 401 (k)s and other retirement accounts are relying more heavily on stocks." (Money magazine, June) . . . "People are becoming investors earlier. The median age of shareholders declined from 53 to 43 recently." (New York Stock Exchange survey) . . . "Only stocks win. The average annual rates of return after taxes and inflation since 1974 are: Blue-chip stocks plus 7.2 percent; long-term government bonds minus 0.6 percent; money market funds minus 5.9 percent." (Ibbotson Associates) . . . The T. Rowe Price International and New Asia mutual funds are now favored by nine financial newsletters, according to The Hulbert Financial Digest.

HOPEFULLY HELPFUL: Tip to salesmen and saleswomen: If your firm offers to elevate you to sales manager, be careful. And if you take the promotion, by all means keep your own sales production. I've known many successful salespeople who gave up their lucrative sales productions for a "manager" position, only to be let go in a downsizing. Stated another way, when salesmen/women put money in their firms' bank accounts, they're golden; when they don't, anything can happen. Furthermore, the qualifications for a salesperson and sales manager are different. I know one very successful stock and bond salesman who took a sales manager position, only to fail six months later and find himself out of a job.

WORKPLACE WISDOM (1): "Appreciate yourself as others do. It's worthwhile to reread your resume, awards you've won, commendations you've received, etc., Find newspaper clippings mentioning your accomplishments or any other work you've done that you're proud of. Post these items on your home bulletin board, and let them serve as quick reminders of how smart, accomplished and successful you are." ("Skills for Success" by Adele Scheele, New York-based career strategist)

WORKPLACE WISDOM (2): "All good keynote speakers know they can capture their audiences' attention by starting their speeches with interesting personal stories. The same is true for candidates who tell stories during job interviews. An interesting personal anecdote that illustrates your best characteristics will capture an interviewer's attention more than just reciting your abilities." (Marilyn Moats Kennedy, career counselor, in National Business Employment Weekly, June 4, on newsstands this week)

MONEY SAVER: "Cheapest way to lease a car: Pay off the entire lease up front. Example: A single-payment, three-year lease on a $30,000 car would cost you $12,000. Instead, if you chose to pay off the same lease through monthly installments, you would eventually pay about $14,000. Important: If you favor a single-payment lease but intend to keep the car longer than three years, it pays to come up with more cash and buy the car." (Art Spinella, auto-leasing specialist, CNW Marketing/Research)

STARTING A CLUB: "If you wish to start an investment club, here's what you need to know. Start with at least 15 members. You'll have plenty of people to share the work, and you'll have enough money to buy stocks without wasting commission money. For example, if a club buys 10 shares of a $20 stock at Charles Schwab, the standard $39 commission equals 19 percent of the principal. But if the club bought 100 shares of a $20 stock, the $55 commission comes to only 2.75 percent. Once you get a group together, join the National Association of Investors Corp., 810-543-0612. This outfit, which charges modest fees, provides lots of information on running a club, including manuals, charts, etc." (Smart Money, June)

NOTES & QUOTES: The latest Kiplinger Washington Letter says that temporary workers are here to stay, explaining that employers won't drop them now that business is stronger . . . "Women entrepreneurs are forming small businesses at twice the rate of men." (Business Week) . . . "Despite a stronger economy, hotels are offering summer deals as sweet as last year. Major chains -- Hilton, Radisson, Marriott, Holiday Inn, Hyatt -- have cut prices up to 55 percent." (USA Today) . . . Tomorrow night, the guest on "Wall Street Week With Louis Rukeyser" will be Gary Pilgrim, fund manager, PBHG Fund, with panelists Harvey Eisen, Robert Stovall and William Waters. Martin Zweig will guest-host the show while Mr. Rukeyser attends his 40th Princeton class reunion . . . The newly redesigned Barron's Business & Financial Weekly, which comes out every Saturday, is worth reading. This week's issue is 160 pages, and for $2.50 you get a wealth of "money" information.